Thursday, July 9, 2015

REAL ESTATE NEWS...CONSUMER ATTITUDES ON HOUSING MAY SIGNAL HEALTHIER PURCHASE MARKET AHEAD

Americans’ outlook toward the current home selling market and the future of home rental prices may bode well for purchase activity this year, according to results from Fannie Mae's June 2015 National Housing Survey. Amid continued strong job and income growth, consumers are looking more favorably on the current selling climate, perhaps portending an uptick in the existing home supply.

Among those surveyed, the share who believe now is a good time to sell a home reached a new survey high, increasing three percentage points to 52 percent and crossing the 50-percent threshold for the first time in the survey’s history. At the same time, the share who said they expect home rental prices to go up in the next 12 months rose four percentage points to 59 percent, also an all-time survey high. With an increase in housing supply from those ready to sell, combined with higher rental cost expectations, more potential homebuyers may be encouraged to leave the sidelines.

Highlights from the survey:
  • The average 12-month home price change expectation fell to 2.6 percent.
  • The share of respondents who say home prices will go up in the next 12 months fell to 47 percent. The share who say home prices will go down rose to 7 percent.
  • The share of respondents who say mortgage rates will go up in the next 12 months rose 3 percentage points to 50 percent.
  • Those who say it is a good time to buy a house fell to 63 percent – tying a survey low – while those who say it is a good time to sell rose to 52 percent – a new survey high.
  • The average 12-month rental price change expectation fell to 4.2 percent.
  • The percentage of respondents who expect home rental prices to go up rose to 59 percent – a new survey high.
  • Those who think it would be easy to get a home mortgage remained at 50 percent, while those who think it would be difficult remained at 46 percent.
  • The share who say they would buy if they were going to move fell 2 percentage points to 64 percent, while the share who would rent increased to 30 percent.

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